Pier 1 furloughs staff, cuts wages

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Pier 1 on Tuesday announced it has implemented a furlough program, which impacts about 65% of its home office staff, as well as some store and distribution associates.

The company also cut compensation by 20% for retained associates,"who are critical to ensuring business continuity and a seamless customer experience on Pier1.com," according to a Pier 1 press release. For corporate employees at the executive vice president level or higher, the company is reducing salaries by 50%, and reducing by 30% for senior vice presidents. ​

"Like many retailers that have temporarily closed stores in response to COVID-19, we are making difficult decisions that are necessary to preserve value in our business for the long-term benefit of our associates, customers and other stakeholders," Robert Riesbeck, the company's CEO and CFO, said in a statement.​

Modell's Sporting Goods filed for Chapter 11 bankruptcy protection earlier this month with plans to liquidate its entire 134-store footprint. But on Tuesday, the sporting goods retailer asked a New Jersey bankruptcy judge to postpone its Chapter 11 case by 60 days due to the COVID-19 pandemic making going-out-of-business sales impossible, according to a Law360 report.

But glimmers of hope arose early Wednesday morning as lawmakers and the Trump administration reached a deal for an estimated $2 trillion stimulus package. The deal will provide direct financial checks to many Americans, expand unemployment insurance, provide hundreds in billions of dollars in loans to small and large businesses and offer additional resources to health care providers.